Dogecoin hits a 3-week high: Can DOGE bulls flip $0.1 next?

Since bouncing back from a $0.090 slip, Dogecoin [DOGE] has shown strong upside momentum, flipping the 20- and 50-day moving averages. The memecoin touched a three-week high of $0.097 before slightly retracing. 

As of this writing, DOGE traded at $0.96, up 4.83% on the daily charts, adding to its 5% weekly gains. Amid this sustained uptrend, traders across the market have shown greater willingness to take on risk. 

Dogecoin’s sustained risk appetite boosts price recovery

AMBCrypto observed that Dogecoin has continued to close at higher highs and higher lows amid sustained risk appetite. 

According to CoinGlass, the memecoin’s Open Interest rose 10% to $1.2 billion, while derivatives volume dropped 23%. TThis indicated a buildup in positions but a reduction in trading activity. 

Even more so, significant capital flowed into these positions. CoinGlass data showed that $718.2 million flowed into Futures positions while $662.5 million exited the market. 

For that reason, the memecoin’s Futures Netflow jumped 42% to $55.68 million, a clear sign of increased market positioning. 

Interestingly, this capital flow was highly boosted by increased short coverings. As the market rallied, over $2.7 million worth of shorts were liquidated.

To avoid the same fate, investors turned to short covering, while others flipped to longs, thus raising futures capital.

Upside momentum strengthens as bulls re-energize

Historically, Dogecoin has performed well during periods of extreme greed and appetite. Currently, this sustained risk appetite has significantly strengthened the memecoin’s upside momentum.

 In fact, bulls have largely dominated the market, as evidenced by the Bulls v. Bears indicator, which surged to a three-week high of 25.5, indicating sustained buyer dominance. 

The memecoin’s Relative Strength Index (RSI) confirmed this momentum, rising to 58. At this level, it showed that buyers have commanded a significant control of the market. 

Traditionally, sustained buyer dominance has accelerated upside momentum, leading to higher prices. Thus, if the current conditions hold, Dogecoin’s price recovery will continue and touch the $0.1 resistance level. 

Profit-taking risks persist

As expected, the recent gains have created profit-taking conditions for both holders and short-term speculators. 

Looking at the exchange flows, the memecoin saw increased deposits after touching $0.097. Dogecoin’s Spot inflow rose to $97.56 million, while withdrawals dropped to $93.36 million. 

As a result, the memecoin’s Spot netflow rose 157% to $4.2 million. A positive netflow suggested that sellers largely dominated exchanges over the past 24 hours. 

Often, when sellers overtake buyers, the market has tended to retrace. Therefore, if this selling trend persists, it will derail the uptrend and see a pullback towards $0.092. 

Final Summary

• DOGE rose 4.8%, touching a three-week high of $0.097 before a slight retracement. 
• Dogecoin extended the uptrend, largely driven by increased risk appetite and short covering, but rising profit realization threatens these gains.